Research On The Influence Of Debt Financing To Investment Efficiency Of Pearl River Corporation

With the deepening of China’s reform and opening-up and the continuous improvement of the market economic system,the real estate industry is also booming.At present,the real estate industry is not only a pillar of China’s national economy,but also an important force to promote social progress.The real estate industry is a capital-intensive industry.Investment and manage-ment based on debt is its basic development mode.Scientific and reasonable arrangement of debt financing scale and structure is conducive to the improvement of its investment efficiency,and in the long run,it is more conducive to the steady development of the industry and even the national economy.In order to rationalize the debt financing level and structure,promote the effective play of debt governance and improve its investment efficiency,this paper studies the relationship between debt financing and the investment efficiency of Pearl River Shares according to the relevant theories of investment and financing.This paper analyzes the current situation of investment and financing of Pearl River Corporation according to the operation of the company,and evaluates the investment efficiency of Pearl River Corporation by using DEA-BCC model.This paper empirically examines the impact of debt financing on the investment efficiency of real estate enterprises by taking A-share listed real estate companies in Shanghai and shenzhen from 2013 to 2020 as samples.The research finds that :(1)The overall debt financing of Chinese real estate enterprises is not conducive to the improvement of investment efficiency of enterprises;(2)Neither bank loan nor corporate bond can effectively restrain inefficient investment behavior of enterprises,while commercial credit can restrain inefficient investment behavior of enterprises.(3)Short-term debt financing fails to play an effective role in governance,while long-term debt financing is more compatible with the investment mode of real estate enterprises,which is conducive to the improvement of investment efficiency of enterprises.Based on the evaluation analysis and empirical test results of the investment efficiency of Pearl River Corporation,this paper explores the reasons for its low investment efficiency from the perspective of debt financing of Pearl River Corporation,mainly including high overall debt leverage,low degree of diversification of debt sources,unreasonable debt financing term structure,etc.Based on this,some countermeasures and suggestions are put forward,such as effectively controlling the scale and risk of assets and liabilities,optimizing the debt source structure and rationalizing the debt maturity structure.The research results of this paper have certain reference significance for guiding Pearl River Corporation to adjust and improve its debt capital and structure,effectively play the role of debt management,and improve its investment efficiency.At the same time,it can also provide beneficial reference for the same type of enterprises.There are16 figures,28 tables and 80 references in this paper.